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Following extensive consultation, with more than 3,000 responses over the last eight months, HMRC has issued in-depth details on how digitising the tax system through its flagship Making Tax Digital project will help millions of businesses to get their tax bills right first time, without the need for an annual tax return.

Alongside draft legislation, HMRC has also published its responses to the six consultation documents issued in August 2016. After listening to the concerns of businesses and agents, HMRC can now confirm that under Making Tax Digital:

Protecting the environment with Landfill Tax as extension comes into force

Posted 01/04/2018

From 1 April 2018, Landfill Tax is changing to include disposals at unauthorised waste sites in England and Northern Ireland. These changes will support legitimate waste management businesses by creating a fairer tax system and a deterrent to causing environmental harm by disposing of material at an unauthorised waste site.

A Buckinghamshire man, who laundered money from the development of an online banking service used by criminals, must pay back £1,018,085 within three months, or spend another seven years in prison and still owe the money.

A Hull shopkeeper, who was caught with more than one million illicit cigarettes stashed in self-storage containers, has been jailed for five years after being investigated by HM Revenue and Customs (HMRC).

Time is running out for anyone with offshore assets before tougher penalties kick in, as HM Revenue and Customs (HMRC) publishes proposals to allow more time to investigate when someone hasn’t declared the right amount of tax.

The Government understands that many businesses that were contracted to Carillion will be concerned about their ability to pay their tax. As part of its ongoing commitment to delivering support for businesses, HMRC will provide practical advice and guidance to those affected through its Business Payment Support Service (BPSS).

A company director from Aberdare, who set up fake businesses and sent bogus invoices between them as he attempted to steal more than £140,000 in tax, has been jailed for 18 months after an investigation by HM Revenue and Customs (HMRC).

An East Kilbride mechanic, who failed to pay almost £210,000 of tax and National Insurance due on self-employed earnings, has been jailed for 18 months after he was investigated by HM Revenue and Customs (HMRC).

HM Revenue and Customs (HMRC) has formally signed an agreement to lease 14 Westfield Avenue, Stratford, London for 25 years. The 240,000 square feet. office space will accommodate around 3,800 HMRC employees from late 2020.

A self-styled tax adviser, who had no accounting qualifications, was branded a ‘parasite’ by a judge sentencing him to four and a half years’ in jail for committing a £150,000 tax fraud while living in Spain.

An operation to disrupt the sale and supply of illegal tobacco and alcohol across north Wales has uncovered more than 440,000 cigarettes, 169 kilos of hand-rolling tobacco and 2,700 litres of alcohol, all believed to be illicit.

The ringleader of a gang, who laundered more than £107m of underworld cash through their London bureaux de change, has been stripped of property in the UK, France, Sri Lanka and India to repay his criminal income.

A lorry driver, who smuggled more than one tonne of hand-rolling tobacco into the UK hidden among a load of peanuts, evading £220,000 in duty, has been jailed for 22 months after an HM Revenue and Customs (HMRC) investigation.

Taking on a summer job as a student not only looks great on your CV after you’ve graduated – it gives you real work experience in your chosen field and gives you a feel of what your dream job is really like day-to-day.

As GCSE exam results are released in England, Wales and Northern Ireland today, HM Revenue and Customs (HMRC) is reminding parents who receive Child Benefit and Child Tax Credits to inform them of their child’s educational status ahead of 31 August, otherwise payments will stop.

A Rochdale businessman, who pocketed nearly £1.25 million from two VAT frauds, has been ordered to repay almost £400,000 or face another four years in jail after an investigation by HM Revenue and Customs (HMRC).

With just one week to go until the 31 July tax credit renewal deadline, HM Revenue and Customs (HMRC) is urging the 960,000 customers that are still to renew to do it now – or risk having their payments stopped.

A lorry driver, who smuggled more than nine million cigarettes into the UK hidden inside air filter units, evading £2.5 million in duty, has been jailed for three years after an HM Revenue and Customs (HMRC) investigation.

The report shows that HMRC brought in an additional £29 billion by cracking down on the minority of individuals and businesses who try to not pay the tax they owe, while improving customer service for all taxpayers.

One of Britain’s most wanted tax fugitives, the man at the centre of a vast, multi-million pound tax fraud, who fled the UK in July 2014 to avoid prison, has been deported from Dubai after being caught travelling with a fake British passport.

Data theft fraudsters jailed for attempted ?10.2m tax credits scam

Posted 06/07/2017

Two members of an organised crime group, who attempted to claim £10.2million in tax credits using stolen identities of public sector employees, have been jailed for eight years and nine months after a complex criminal investigation by HM Revenue and Customs (HMRC). Two women received suspended prison sentences.

An accountant, two film producers and an independent financial advisor, who were jailed with three others for more than 36 years for committing a £2.2 million tax fraud, have been ordered to pay back more than £2 million of their criminal profits or face a further ten years in jail.

A County Fermanagh farmer, who was jailed in 2014 for stealing £1.3 million in fraudulent VAT repayments, has been ordered to pay back more than £390,000, or serve a further three and a half years in prison.

A former Ascot-based property developer, who hijacked details of an offshore company in the British Virgin Islands and forged documents to commit fraud and evade VAT, has been jailed for three years and seven months. He was also trading while disqualified as a company director.

A millionaire businessman, who failed to pay any tax on his earnings because he wasn’t a “paperwork person”, has been sentenced to four years for evading more than £1.3m in tax after he was investigated by HM Revenue and Customs (HMRC).

Wiltonpark LTD, owner of five London-based ‘gentlemen’s clubs’ branded ‘Secrets’, has lost its tax battle with HM Revenue and Customs and now faces a tax bill estimated at more than half a million pounds.

Six members of an organised crime network, which smuggled almost three million illicit cigarettes into the UK hidden in hollowed-out table tops, have been sentenced for their role in evading more than £657,000 in taxes. Four of the men were jailed for a total of ten years and two months.

One of the UK’s most wanted tax fugitives, who helped mastermind an international illicit tobacco smuggling operation, has been jailed after being extradited from South Africa by HM Revenue and Customs (HMRC) to face justice.

Glamorous holidays abroad, luxury watches and Friday nights out feature in HMRC’s latest list of the most outlandish expenses which customers tried to claim back on their 2014-15 Self Assessment returns. With a week to go until the 31 January deadline, HMRC is releasing the strangest expenses to ensure other customers don’t make similar claims:

A London couple who ran a criminal money laundering service from their family-owned bureaux de change have been stripped of cash in offshore bank accounts, jewellery and property to repay more than £1.2m.

Two men from County Armagh and one from the Netherlands have been arrested as part of an international investigation by HM Revenue and Customs (HMRC) and Dutch Customs (FIOD) into suspected money laundering and tobacco smuggling frauds.

A lorry driver caught smuggling 2.9 million cigarettes into the UK, hidden under a load of half-baked mouldy baguettes, has been jailed for four years and three months after being extradited from Romania by HM Revenue and Customs (HMRC).

A London money launderer and his accomplice, whose bid to escape arrest by HM Revenue and Customs (HMRC) was thwarted by a traffic jam, have been jailed for a total of eight-and-a-half years for laundering £5.9m.

HM Revenue and Customs (HMRC) and Concentrix have agreed to end, with immediate effect, the contract through which Concentrix provided additional capacity to check tax credits claims and reduce error and fraud in the system.

A Staffordshire company director, who pretended to trade in designer jewellery, IT services and sports equipment to steal more than £204,000 VAT, has been jailed after HM Revenue and Customs (HMRC) exposed his fraud.

A Birmingham company director, who claimed to run a business producing whisky, chutney and jam, has been sentenced after it was revealed it was just a front for him to steal almost £110,000 in a tax fraud.

A Wanstead businessman, who claimed to trade in fine wines and diamonds but instead conned investors to fund a lavish lifestyle, buying luxury cars and hundreds of pairs of expensive trainers, has been sentenced to five and a half years in prison for a £350,000 fraud.

The director of an Edinburgh construction company, who lied about her business expenses in a VAT fraud, has been jailed for two years after an investigation into her company’s finances by HM Revenue and Customs (HMRC).

HM Revenue and Customs (HMRC) has won two major tax avoidance battles against the Ingenious Film Partnership and Icebreaker avoidance schemes in cases worth more than £820 million in tax owed and interest.

HM Revenue and Customs (HMRC) announced today that around two million people have renewed their tax credits, but that leaves more than a million in danger of losing their payments if they don’t renew before Sunday 31 July.

A Lancashire man caught smuggling illegal cigarettes and tobacco into the UK, has been ordered to pay back £240,000, of which £90,000 must be paid within three months, or he will face a further 18 months in jail.

Four men have been jailed for a fraud disguised as a tax avoidance scheme, intended to defraud taxpayers of £100 million. The men falsely claimed to have invested £275 million in film projects then used offshore companies to cover their tracks, but HM Revenue and Customs (HMRC) exposed it as a scam.

Four men have been found guilty of promoting and operating a fraudulent tax avoidance scheme, to defraud taxpayers out of £100 million. The men falsely claimed to have invested £275 million into film projects then used offshore companies to cover their tracks, but HM Revenue and Customs (HMRC) exposed it as a scam.

A businessman from Reading, who stole more than £1 million from his workers’ pay packets, has been ordered to repay criminal profits of £884,023, within six months, or remain in prison for a further six years.

A Staffordshire company director, who pretended to trade in designer jewellery, IT services and sports equipment to steal more than £204,000 VAT, has been jailed after HM Revenue and Customs (HMRC) exposed his fraud.

The owner of a Nottinghamshire security firm, who ran away from court minutes before he was due to be sentenced for pocketing £300,000 in VAT he charged customers instead of handing it over to HM Revenue and Customs (HMRC), has been given a 28-month prison term.

A businesswoman, banned from being a company director, has been jailed after she stole more than £158,000 from her employees’ tax and National Insurance contributions (NIC) and pocketed a further £141,500 in unpaid VAT.

Eight men have been arrested and 55,000 litres of fuel seized, as part of an ongoing investigation by HM Revenue and Customs (HMRC) into a suspected fuel smuggling fraud worth an estimated £3 million in evaded tax.

The pensioner, the barman and the cannabis deal that never was: how two money launderers came unstuck HM Revenue & Customs (HMRC) - Jan 20, 2016 17:05 GMT

Posted 20/01/2016

Two men, who were caught exchanging more than £100,000 in cash outside a Barnsley working men’s club, have been jailed after they were investigated for money laundering offences by HM Revenue and Customs (HMRC).

Lin Homer has announced today that she is to leave HM Revenue and Customs (HMRC) in April, after more than four years as Chief Executive and Permanent Secretary and a public service career spanning 36 years.

HM Revenue and Customs (HMRC) has had a very successful year with record-breaking and sustained results through 2015 by increasing revenues, reducing costs and improving customer service. The continued transformation through digital services, including new powers being provided to HMRC due from 2016 onwards, means the department is on target to further improve customer service and crackdown on tax cheats, bringing vital revenues for public services.

HMRC has today announced the next step in its ten-year modernisation programme to create a tax authority fit for the future, committing to high-quality jobs and the creation of 13 new regional centres over the next five years, serving every nation and region in the UK.

Five men, who were part of a seven-strong gang that tried to steal more than £1 million in tax by setting up sham companies they claimed traded in television broadcasting rights for cage fighting events, have been jailed for a total of almost 19 years.

A former County Durham milkman, who masterminded a plot to smuggle ten million illicit cigarettes into the UK, has been jailed after being extradited from Thailand by HM Revenue and Customs (HMRC) to face justice.

HM Revenue and Customs (HMRC) taskforces have brought in £109 million in the last six months it was revealed today. That includes £64.9 million recovered in the first three months of this year, more than double the figure for the same period in 2014.

An operation to disrupt the sale and supply of suspected illegal tobacco and alcohol in Manchester and Bolton uncovered over one million cigarettes and over 74 litres of alcohol, all believed to be illicit.

A chartered surveyor, who attempted to steal almost £213,000 in Income Tax and VAT by failing to declare his earnings and submitting false repayment claims for the upkeep of a racehorse called ‘Thunder Cat’, and four others, has been jailed for 18 months.

The director of three payroll and book-keeping companies who stole over £250,000 to keep his business afloat by pocketing his employees’ tax and National Insurance Contributions (NICs) and failing to pay VAT bills has been jailed for two years.

HM Revenue and Customs (HMRC) today announced that it will bring some existing IT services under its direct control, while it continues to plan the transition to a new IT delivery model following the ending of the Aspire contract in 2017.

HM Revenue and Customs (HMRC) announced today that it collected a record £517.7 billion in tax in 2014-15 (an increase of £12 billion on the previous year), as a result of economic growth and the continued crackdown on tax evasion and avoidance.

HMRC has won a major tax avoidance case against Abbey National Treasury Services PLC (ANTS) and Cater Allen International Ltd (CAIL), protecting more than £16 million for UK taxpayers after the courts decided against their attempt to avoid paying corporation tax on the interest on floating loan rate notes. In total, the ruling will protect over £86 million, as four similar cases were awaiting the ruling.

One month to go before new rules kick in for employment agencies

Jail for VAT fraudster who pocketed friend’s tax and National Insurance

Posted 02/06/2015

A County Durham businessman who left a ‘black hole’ in his friend’s state pension fund by failing to pass on his Income Tax and National Insurance deductions to HM Revenue & Customs (HMRC) has been jailed.

The former director of an eco-electrical manufacturing company has been sentenced, alongside the company’s Finance and IT Manager, for a £220,000 VAT fraud following an investigation by HM Revenue and Customs (HMRC).

A company director, who admitted falsifying business records to steal almost £220,000 in VAT refunds, has been electronically tagged for eight months and ordered to pay £100,000 in compensation after an investigation by HM Revenue and Customs (HMRC).

A Leicestershire businessman who fraudulently claimed to be supplying women’s clothes to Parisian shops so that he could reclaim £670,000 in VAT has been jailed for two years after an investigation by HM Revenue and Customs (HMRC).

An online map pinpointing tax cheats around the country together with their crime and sentence has been launched today by HM Revenue and Customs (HMRC). The map allows people to see the impact of HMRC’s enforcement work.

As the countdown to the Self Assessment deadline begins, HM Revenue and Customs (HMRC) has revealed the top five most outrageous personal expenses claims included in 2013-14 Self Assessment tax returns.

If you haven’t yet sent your 2013/14 tax return to HM Revenue and Customs (HMRC), remember not to do it on paper – or you’ll end up with a £100 late-filing penalty.

The 31 October paper-filing deadline for 2013/14 tax returns has now passed. Even if you have no tax to pay, or you eventually pay your tax on time, a late paper return will still land you with the £100 penalty.

Cigarette smuggling gang jailed

Posted 27/10/2014

Two men who tried to hide their criminal cash by stashing it inside their wardrobes have been jailed along with one other member of their cigarette smuggling gang, after an investigation by HM Revenue and Customs (HMRC). A fourth gang member will be sentenced next month.

A former president of the Association of Taxation Technicians (ATT) and a fellow company director who were both jailed for a £5 million pension scheme tax fraud have been ordered to
pay back a total of £5.1 million.

HMRC to close EBT settlement opportunity

Payback time for electrical VAT fraudster

Posted 12/08/2014

A Staffordshire man jailed for stealing over £372,000 by making fraudulent VAT repayment claims has been ordered to pay money back or face an extra two years in jail. The confiscation order comes after a financial investigation by HM Revenue and Customs (HMRC).

Payback time for Kent VAT fraudster

Tax credits claimants reminded to renew it or lose it

Posted 03/06/2014

HM Revenue and Customs (HMRC) is sending out 5.8 million tax credits renewals packs which will arrive by 30 June. Over 3 million of these claims need to be renewed before the deadline for claimants to continue receiving tax credits. Last year some 650,000 claimants had their money stopped because they did not renew by the 31 July deadline.

HMRC crackdown yields record £23.9bn in additional tax

HMRC gains record revenues with crackdown on tax dodgers

Posted 27/05/2014

New figures published today show that HM Revenue and Customs (HMRC) secured a record £23.9 billion in additional tax revenue over the last year as a result of increased activity to make sure people pay the taxes they owe.

Tax avoidance scheme could double brewers bill

Conspirators jailed after six million cigarettes seized

Posted 22/04/2014

Four men, who tried to evade over £1.3 million in duty and taxes due on sales of almost six million illegal cigarettes, have been sentenced today after an investigation by HM Revenue and Customs (HMRC).

£28m cigarette smuggling gang jailed

Tribunal holds recruiter to account for temps tax bill

Posted 11/04/2014

One of the UK’s largest employment agencies, Reed, has been found liable for up to £158 million of unpaid tax due on the salaries of thousands of temporary workers it employed, known as “employed temps”.

Illegal goods seized in self-storage site crackdown

Posted 31/03/2014

More than 500,000 illicit cigarettes and 276 kilos of smuggled hand-rolling tobacco have been seized by HM Revenue and Customs (HMRC) in an operation targeting self-storage units across the North East.

HMRC to focus on Landlords in latest Tax crackdown

Posted 25/03/2014

HMRC is ratcheting up its ongoing crackdown on tax evasion with its latest focus on landlords who let out residential property, whether at home or overseas, and Mike Harrison, Partner in accountant firm Saffery Champness says that rural landlords will be as much in the sights of HMRC as any other.

Largest ever illicit alcohol haul seized in Wales

Posted 24/03/2014

A man from Cardiff has been arrested after HM Revenue and Customs (HMRC) seized over 169,000 litres of illicit alcohol, in what is believed to be the largest ever seizure of its kind in Wales. It is estimated that the wine, beer and spirits are worth £303,000 in lost duty and taxes.

Tax credits checks for Newcastle customers

Posted 19/03/2014

Tax credits customers in Newcastle who are now living with a partner are being reminded to update their tax credits claim as HM Revenue and Customs (HMRC) launches a new campaign to reduce tax credits error and fraud.

London money launderer jailed

Leicester workshop offers small high-tech firms advice on innovation

Posted 26/02/2014

Small and medium-sized high-tech companies are being invited to a free workshop in Leicester on support available for business growth, research and development (R&D) tax credits and innovation. The event will be held on Tuesday 18 March at Stamford Court, University of Leicester.

Nearly 700 tax criminals convicted in 2013

Care sector abuse of minimum wage rules

Posted 25/11/2013

Care sector workers are in line for nearly £340,000 in back pay as a result of investigations by HM Revenue and Customs (HMRC).

More than 2,400 workers in the care sector were underpaid the National Minimum Wage (NMW) in the last two years across the United Kingdom. Over the two-year period, HMRC looked at jobs across the sector and investigated 224 employers. Some investigations are ongoing, but to date 88 cases have been found to be non-compliant.

Four arrested for suspected 3m cigarette smuggling fraud

HMRC Rental Property Campaign

Posted 15/11/2013

With the recent ending of the Property Sales Campaign on 6 September 2013, HMRC are continuing the theme of targeting property owners who have not declared the correct tax by offering a new campaign aimed at undeclared rental income.

Tax cheats named by HMRC

Posted 12/11/2013

Names of tax cheats have been published on the HM Revenue and Customs (HMRC) website today.

Publishing the names of deliberate tax defaulters ensures everyone pays their fair share, creates a level playing field for honest people and businesses, and cracks down on the minority who seek to evade tax. It is part of HMRC’s approach to combating tax evasion and non-compliance.

Remember, remember, its online from November

Posted 05/11/2013

If you haven’t yet sent in your 2012/13 tax return, remember to do it online to avoid a penalty.

If you send HM Revenue & Customs (HMRC) a paper tax return from November onwards, you’ll receive a £100 late-filing penalty – even if you have no tax to pay, or you pay your tax bill on time. This is because the 31 October deadline for 2012/13 paper tax returns has now passed.

A leader of an organised criminal gang who was jailed for 15 years for his part in a £38 million VAT fraud has been ordered to pay back nearly £13 million to HM Revenue and Customs (HMRC) or face 10 further years in prison.

"Just wanted to say that the new website for Tax Fee Protection insurance is brilliant. It is so easy to use and some of our clients are actually doing the process themselves but I really don’t mind doing it for them as it is so quick and easy.

HMRC Evasion Publicity Campaign

Posted 01/10/2013

HMRC is currently running the second stage of its evasion publicity campaign, through a series of targeted advertisements including radio advertising and over 3,000 billboards in public areas. The campaign works alongside existing compliance activity such as data collection, taskforces and enforcement to raise awareness among those breaking the rules that HMRC is closing in on undeclared income.

TAXWISE Questions answered, August 2013

Posted 07/08/2013

Q) I have recently had a client approach me with a view to completing and submitting his outstanding Self Assessment Tax Returns. There are several years involved in order to bring his tax affairs up to date. He is however concerned that he will be charged large penalties and has asked if there is any way of mitigating his exposure.

TAXWISE Bulletin - How to handle a serious fraud tax investigation

Posted 24/07/2013

HMRC is increasing the number of investigators to be directed at tackling serious fraud. For many years trying to evade tax was seen by many almost as a game rather than as possible criminal activity. The climate has recently changed as a result of the high profile tax avoidance cases which have been featured in the national press, and HMRC is increasing its activity in the area of tax evasion, taking advantage of the favourable publicity which it has received.

Stamp Duty tax avoidance scheme scuppered

TAXWISE Questions answered, July 2013

Posted 10/07/2013

I bought a new van in 2010 with the intention of using it for business. However significant business use only began in January 2013 after the launch of my new website. The business has been successful and as a consequence is now required to register for VAT. Can I claim for input tax on expenditure incurred for business purposes prior to the date of registration?

IR35: Advisers call for government consistency

Further arrests for £3.6 million VAT fraud

Posted 22/06/2013

Four people were arrested on Wednesday (19 June) on suspicion of tax fraud estimated to exceed £3.6 million. This brings the total arrested in this investigation to nine, following the arrest of five others in December 2012.

Film producer guilty of VAT fraud

Avoidance scheme lands Abbeyland with liability

Posted 04/06/2013

A property development company has failed in its attempt to avoid paying tax on a property sale by creating a “loss” of £1.6 million. It used a scheme that involved buying and surrendering investment bonds issued by a life assurance company.

£4m windfall for underpaid workers

TAXWISE Questions answered, May 2013

Posted 29/05/2013

I understand that HMRC have launched a campaign under which individuals who have not declared Capital Gains Tax on the sale of residential properties can make a disclosure. What are the details of this initiative?

Smuggled diesel seized at Cairnryan port

Clothing chain boss jailed for VAT fraud

Posted 21/05/2013

The managing director of a clothing chain, who failed to pay his VAT in full and pocketed almost £68,000 in tax and national insurance contributions deducted from his employees’ wages, has been jailed for 18 months.

No Safe Havens for Offshore Tax Cheats

Posted 09/05/2013

HM Revenue and Customs (HMRC) confirmed today that it is working with the United States and Australian tax administrations (the IRS and ATO) on data which reveals extensive use of complex offshore structures to conceal assets by wealthy individuals and companies.

HMRC helplines begin move to 03 numbers

Bristol and West loses Corporation Tax avoidance case

Posted 26/04/2013

Bristol and West, owned by the Bank of Ireland, has lost an attempt at Tax Tribunal to avoid paying around £30 million tax on a £91 million gain. The company transferred a swap contract to another Bank of Ireland subsidiary in a flawed attempt to exploit what it thought was a loophole in the tax rules.

May Day alert for late tax returns

TAXWISE Questions answered, April 2013

Posted 17/04/2013

One of my clients who owns several furnished properties overheard a conversation which stated that the renewals basis for furnished properties was being removed. Is this correct and what reliefs are still available?

IMPORTANT We have Moved

Island tax evaders told to come clean

Posted 10/04/2013

Tax cheats who have been hiding investments and assets in the Isle of Man, Guernsey or Jersey to evade tax are being asked to pay the tax they owe before HM Revenue and Customs (HMRC) clamps down on them.

Law breakers targeted in M4 road checks

Property Sales campaign

Posted 18/03/2013

The Property Sales campaign is an opportunity for you to bring your tax up to date if you have sold a residential property, in the UK or abroad, that’s not your main home. If you made a profit but have not told HM Revenue & Customs (HMRC), you might not have paid the right amount of tax. To take advantage of the best possible terms you must voluntarily disclose your income or gains and pay what you owe by 6 September2013.

HMRC wins award from The Princes Trust

Film scheme didnt do what it said on the can

Posted 01/03/2013

A tax avoidance scheme marketed by Goldcrest Pictures Limited to some of the wealthiest people in society has failed to live up to its promise. The Tax Tribunal has ruled that the scheme, which was based on buying and selling film rights, simply didn’t work. Users not only had to pay the tax owed with no relief at all for the money they put into the scheme, but also ended up out of pocket as a result of paying fees to the company.

1548 Tax returns filed on 25th Dec

Posted 01/01/2013

While millions of people were exchanging presents, feasting on turkey, and nodding off in front of the television, 1,548 people decided to take time out from the yuletide festivities and do their tax return online – a 40 per cent increase on Christmas Day 2011, when 1,100 people filed online.

Fags in furniture - last man sentenced

TAXWISE Questions Answered - December

Posted 12/12/2012

Do I have to register for VAT if my turnover has reached the level where a business is required to register, but I expect that the value of my taxable supplies will reduce? I am a consultant; my customers are based in the UK and I have just won a contract to provide consultancy services to an Australian company, this income will definitely push my turnover over the registration threshold; but it is a one-off?

RTI penalties approach published

TAXWISE Questions Answered - XMAS Parties - November 12/1

Posted 28/11/2012

As Christmas is just around the corner I would like to reward my employees for their hard work this year by some means. I do not want my employees to have to pay any extra tax due to this and wondered what the tax position of a party, bonus or gift would be for my staff?

Rental property to feel the force

TAXWISE Questions Answered - November 12

Posted 14/11/2012

My clients own 90% of their own trading company. The remaining 10% of the shares are owned by their three adult children (split 4%, 4% and 2%). They are looking at the possibility of selling the business in the next 18-24 months and want to minimize the children’s exposure to any potential capital gains tax charge. What are the potential options?

HMRC closes in on tax cheats

Co Tyrone fuel laundering plant dismantled: Man arrested

Posted 09/11/2012

A man has been arrested following the discovery of a huckster site and fuel laundering plant, capable of producing 14,000 litres of illicit fuel a week evading £10,000 in duty, by HM Revenue & Customs (HMRC) in Co Tyrone yesterday (Wednesday).

Business Records Checks re-launched

TAXWISE Questions Answered

Posted 31/10/2012

Question: My wife and I own our own properties where we lived before our marriage. We have bought a third property which we are going to live in together and we plan to rent out the other two properties. We have been advised that to simplify our tax affairs, should we transfer the original properties into joint names allowing us to benefit from two annual exemptions on any future property sales?

High Income Child Benefit Charge letters set to be delivered

Second singing accountant convicted of 70m GBP charity tax rip off

Posted 24/10/2012

A second professional tax adviser working for the Vantis Tax Ltd group was today jailed for four years for his part in a £70 million tax fraud.

Roy Faichney, Managing Director of Vantis Tax Ltd, had a “gentleman’s agreement” with his deputy, David Perrin – who was found guilty for his part in the fraud in January – to share the £4.5 million profit from a fraudulent tax avoidance scheme sold to wealthy customers, which left charities and Exchequer out of pocket.

Game over for tax fraud gambler

Posted 22/10/2012

A financial adviser who assisted a client in reclaiming nearly £900,000 in VAT and then gambled some of the proceeds away in a London casino has been jailed for five years and banned from going into casinos and gaming online for three years after his release.

TAXWISE Questions Answered

One of HMRC's most wanted found in Cyprus

Posted 16/10/2012

A fraudster on HMRC's UK top 20 tax fugitive list has been found in Cyprus and is trying to negotiate a return to the UK.

Timur Mehmet is wanted for his role in a VAT fraud scheme worth £25m to resell goods several times and claim VAT via setting up fake companies issuing sham invoices. The VAT he claimed was never passed onto HMRC.

Charity fraudster jailed for five years

Posted 05/10/2012

The treasurer of a Christian charity, who stole over £500,000 from two charities through claiming false Gift Aid contributions and transferring cash to his personal bank account, has been jailed for five years.

Are Accountants next in line for HMRC crackdown

Posted 24/09/2012

In what appears to be a firmer and more Draconian approach to targeting the professions, the threat to accountants could be just around the corner.

Last October TAXtv presenter Giles Mooney predicted this possible outcome. He said he'd heard “rumours” that lawyers and accountants could be next in line: “HMRC already knows how many clients an accountant has and has an idea on fee structures, the Revenue's computer could easily check to see if an accountant's declared revenue was lower than expected.”

HMRC admits mistakes in more than half of complaints

Posted 15/09/2012

NEARLY THREE OUT OF FIVE complaints made to the taxman in resulted in the taxman admitting fault, according to research conducted by law firm Pinsent Masons. More than 58,000 complaints were received by HM Revenue & Customs in 2010/11, with the department itself upholding the grievances at least partially in over 33,000 cases, equating to 57% of total objections.

Audit exemptions to be extended from 1 October

Tax Advice - Questions and Answers No 15 September 2012

Posted 06/09/2012

Question. I have received a notice from H M Revenue & Customs (HMRC) informing me of their intention to carry out a cross tax review of my business records. What can I expect and what rights do I and HMRC have?

Top tax cheats put in the frame

Posted 16/08/2012

Photographs of HM Revenue & Customs (HMRC) Most Wanted tax fugitives are today being published for the first time online.

To help in the effort to hunt down the United Kingdom’s biggest tax fraudsters, HMRC will place photographs of its Most Wanted on its flickr channel and ask members of the public to assist in finding them.

New tax return penalties being sent to 0.5 million non-filers

Posted 14/08/2012

Around half a million people who still haven’t sent their 2010/11 tax returns to HM Revenue & Customs (HMRC) will start to receive additional penalty letters from this week.

The number of outstanding returns has almost halved in 2012, down to 5.9 per cent, compared to 10.7 per cent in 2011. This means 518,000 fewer penalties are being issued. HMRC has also taken 273,000 people out of Self Assessment this year.

Blackburn men jailed for pocketing the VAT

Tax Advice - Questions and Answers No 14 August 2012

Posted 08/08/2012

Question. We own a number of properties and will potentially need to dispose of one or more in the next couple of years. We want to legitimately minimise our tax liability on the sale and wondered what tax planning we should be considering. What advice can you offer?

Electricians have one week left to pay tax

Posted 06/08/2012

Electricians have just one week to pay any undisclosed tax that they owe under an HM Revenue & Customs (HMRC) campaign.

Under the Electricians Tax Safe Plan, electricians can pay any tax and interest they owe, and receive penalties of only 10 per cent. Normally, penalties of up to 100 per cent of the tax owed can be charged, with criminal investigation possible in the worst cases.

Payback time for Midlands ‘casino’ money launderer

Posted 06/08/2012

A professional gambler, who staked substantial sums of ‘dirty’ cash at casinos in Birmingham and London and at top horse racing meetings, has been ordered to repay criminal profits of nearly £2 million within six months or return to jail for ten years.

HMRC tells school children: Tell your teacher if a neighbour is evading tax

HMRC consult TaxWise on the Single Compliance Process

Posted 21/05/2012

The pressure on HMRC to increase tax yields has been well publicised in recent times. This pressure has been accompanied by a less prominent but equally important need for HMRC to operate more efficiently.

Driven by the Spending Review, HMRC has a desire to improve the efficiency of their activities by taking a more targeted approach to enquiries. Essentially, in a nut shell, HMRC need to spend less money generating more tax.

More specifically between now and 2014/15 HMRC are targeted to deliver an extra £7billion in compliance yield, whilst reducing costs by 25%.

Tax refunds come early this year

Posted 11/05/2012

Around three million taxpayers will start to receive tax refunds from next week, two months earlier than last year, HM Revenue & Customs (HMRC) confirmed today. This is because the annual reconciliation of Pay As You Earn (PAYE) for the tax year 2011/12 is starting earlier than ever before.

RTI pilot forges on

Posted 10/05/2012

HM Revenue & Customs (HMRC) has confirmed that a further 310 employer schemes will join the Real Time Information (RTI) pilot following its launch last month.

Over 100,000 employee records have been successfully received by HMRC since 10 volunteer employers joined the RTI pilot on 11 April. The additional employers will join the pilot between 8 May and the end of June.

Gang members jailed for £1.7m tax credit and benefit fraud

Posted 08/05/2012

Eight members of a criminal gang have been jailed for fraudulently claiming over £1.7 million in tax credits, benefits and Sure Start Maternity Grants, following a joint investigation by HM Revenue & Customs (HMRC) and the Department for Work and Pensions (DWP).

Taxman's big payday from new fines

Fergie and Sven hit by HMRC victory in tax case

Posted 30/04/2012

Manchester United manager Alex Ferguson and former England boss Sven Goran Eriksson have been hit by a HM Revenue & Customs (HMRC) tribunal victory that will deny wealthy investors £117 million in tax relief.

Millionaire tax avoiders 'shock' chancellor

Tax Advice - Questions and Answers No 10 April 2012

Posted 04/04/2012

Question. I own a number of residential properties which I let fully furnished to a variety of tenants. I have heard that it has been announced recently that H M Revenue & Customs (HMRC) are changing the rules with regards the renewal of furniture and equipment within my properties. Have changes been announced and if so what are they, when do they come into force and how will they affect me?

Supply and Consideration - Or not?

Posted 26/03/2012

A taxable supply is defined in law as a consideration received for a supply of goods and services in the United Kingdom. Although the majority of items will be treated as supplies there are a number of payments which may not be consideration because there is no direct link between the payment and the supply, or there is no supply of goods or services in return for the payment.

Self Assessment Penalties to raise £90m!

Posted 19/03/2012

A record 9.45 million Self Assessment tax returns were submitted on time this year, with a record 7.65 million (80.9 per cent) of them filed online. This means that for the first time in seven years 90.4 per cent of taxpayers met the deadline - an increase of 4 per cent (800,000 returns) on last year.

HMRC Align Mobile PhoneTax Treatment

Posted 15/03/2012

HMRC recently announced that it had changed its interpretation of the legal definition of “telephone apparatus” to include mobile phones and smartphones. The announcement was made in a HMRC brief 'Employment income - definition of mobile phone (treatment of smartphones)' and means that BlackBerrys, iPhones and other smartphones will no longer be viewed as benefits in kind,

Cars and Input Tax Recovery

Posted 13/03/2012

If you buy a car, and it is “available” for private use, the VAT on the purchase is blocked from recovery as input tax. A car is available for private use when there is nothing to stop an owner or employee from using the car for a private purpose.

Tutors and coaches have less than a month to pay the tax they owe

Boosting Transparency around Tax Disputes

Posted 05/03/2012

HMRC has just announced new governance arrangements for significant tax disputes, to provide greater transparency, scrutiny and accountability. Effective and efficient tax collection is critical to maintaining tax receipts to fund public services.

Penalties for late tax returns and payments

Posted 20/02/2012

If you sent your tax return back late, or paid your tax late, you'll have to pay a penalty. If you think you had a reasonable excuse for being late, you should contact HM Revenue & Customs (HMRC). If you thought you didn't need to send a Self Assessment return this year, you should get in touch too.

Tax Advice - Questions and Answers No 8 Feb 2012

Posted 08/02/2012

Question. I’m currently in dispute with H M Revenue & Customs (HMRC) and my accountant is having problems in getting the Inspector dealing with the enquiry to understand my specific business and how it operates.

I believe HMRC have recently launched a pilot scheme which allows a review of the case with a different officer and my accountant. Is this true and if so how does the review work and would I be bound by any outcome?

Tax Advice - Questions and Answers No 7 Feb 2012

Posted 02/02/2012

Question. I currently own a property in Cornwall which I let out fully furnished to tourists throughout the year. A friend of mine, who also lets property not only in the UK but in France, has told me that changes to the way in which income from Furnished Holiday Lettings (FHL) are taxed is being introduced. Is this correct and, if so, what changes are being made and when do they come into force?

Tax Advice - Questions and Answers No 6 Jan 2012

Posted 26/01/2012

Question. Traditionally in previous years I have submitted my self assessment return to H M Revenue & Customs (HMRC) after the 31 January filing deadline making it a late return. The penalty of £100 in force wasn’t sufficient reason for me to ensure I met the deadline.

I have been told that for the 2011 self-assessment return due to be filed with HMRC on or before 31 January I could face much higher penalties if I fail to submit it on time. Is this correct and what are the maximum penalties I could now face?

April VAT alert for businesses

Posted 23/01/2012

HM Revenue & Customs (HMRC) has issued an alert to VAT-registered businesses across the UK about Important changes that come into effect this spring. From 1 April 2012, all VAT-registered businesses must send their VAT returns online and pay their VAT electronically. Currently, only newly-registered

HMRC Extend Self - Assessment Deadline to the 2nd February 2012

Posted 20/01/2012

To make sure taxpayers are not disadvantaged if they cannot get through to HMRC's call centres on the 31st January, due to threatened industrial action by its staff, HMRC have announced that they will not impose any late filing penalties for taxpayers who file their self-assessment returns on the 1st or 2nd February.

Tax officers to hold lightning strike on Monday 16th January

Tax Advice - Questions and Answers No4 Jan 2012

Posted 12/01/2012

Question: Our business provided a Christmas party for staff and their guests, some ex-staff were also invited to attend. We also provided some of our loyal trading client’s with a small thank you gift for their continued allegiance. What are the tax and VAT implications of these two gestures?

Medics and Dentists may be about to receive a painful prescription from HMRC

Posted 09/01/2012

HMRC have now moved to the next stage of its activity under the Tax Health Plan (THP) which was originally launched in May 2008. The THP, which gave doctors and dentists and opportunity to disclose any irregular tax affairs, ended in March 2010 and HMRC claim it resulted in an additional tax yield in excess of £10m.

David Cameron pledges action on tax avoidance

Welcome Back

Posted 03/01/2012

We hope you have all had a restful and pleasant Christmas and New Year and that you are looking forward to the challenges that the New Year brings us all. We will be adding our News articles and Topical Questions and Answers weekly from now. So do look back regularly to check what's new in the world of HMRC. Everything we post is another reason why TAXWISE Tax Investigation Insurance is as popular as it is.

Tax Advice - Questions and Answers No3 Dec 2011

Posted 07/12/2011

Question:

Mrs Jones is director and shareholder of Jones Ltd. In recent years the company has struggled to trade profitably. As a consequence the balance sheet at 31 August 2010 shows a deficit of £50,000 after taking into account a loan made to the company by Mrs Jones of £25,000. It has been suggested that Mrs Jones converts her loan capital into shares so that the net deficit of the company is reduced to £25,000. What are the consequences of the suggested transaction on any later loss claims that could be made?

Tax Advice - Questions and Answers No2 Dec 2011

Posted 01/12/2011

Question:

My client is the sole director and shareholder of a small trading company. His sister is employed full-time in the business and has been advanced a loan during the year of £7,200. The loan is to be repaid in three years’ time and no interest has been charged. What are the tax consequences for his sister?

CIS – New Penalty Regime

Posted 28/11/2011

Most accountants will be aware that from October 2011, the penalties for late or non-filing of a contractor's monthly return within the Construction Industry Scheme are changing. This is just a reminder of the changes and of the details your clients should be aware of if they are not already!

Tax Advice - Questions and Answers No1 Nov 2011

Posted 24/11/2011

Our Tax Telephone Advice consultants will deal with over 35,000 calls from clients this year. This puts them in a unique position, from which they gain a revealing insight into all aspects of the UK tax regime.

HMRC's "Taxforces" Hit The Road

BUSINESS RECORD CHECKS - HMRC say that 1 in 8 of those visited to date had seriously inadequate records

Posted 05/11/2011

All Business' large or small are required to keep records of all documents used to help complete a return to HMRC, HMRC state on their website that "keeping some records is almost as bad as keeping none at all". follow this link to see a quick guide to keeping records.

Feeling Stressed, under pressure?

Posted 04/10/2011

An Affordable EAP can help, Here at Solar we can now arrange an EAP (Employee Assistance Programme) for your Business. Whether you employee 100's of staff or just one or two an EAP can be implemented at very competitive rates (Starting at just £25 per employee per annum)Their are many reasons why an EAP in your business makes sense, here's just ten

Late Filing Penalties For Self-Assessment Tax Returns

Posted 04/10/2011

HM Revenue & Customs recently issued the following as a reminder of the late filing penalties for Self-Assessment Tax Returns for the 2010/11 years and onwards. Accountants and Tax Advisors should take note of the initial £100 penalty applying regardless of whether the taxpayer has paid their tax on time or not!

New E.A.P (Employee Assistance Programme) from Solar

Posted 14/09/2011

BEING AT THE HELM OF A SMALL BUSINESS THROWS UP ALL SORTS OF CHALLENGES, FROM STAFF TO CUSTOMERS TO SUPPLIERS, YOU HAVE MANY PLATES TO KEEP SPINNING. SOMETIMES THE LAST PERSON ON YOUR MIND IS YOU. AN EAP FROM SOLAR CAN GIVE YOU AND YOUR STAFF SUPPORT AND HELP YOU RECOGNISE AND COPE WITH THE STRESSES OF YOUR WORKING LIFE FROM SUPPORTIVE HELP LINES TO USEFUL MANAGEMENT TOOLS EAP IS A HIGHLY COST EFFECTIVE ADDITIONAL TOOL FOR YOUR BUSINESS

Amnesties set to continue

Posted 13/09/2011

Whilst the VAT Amnesty takes place be wary of initiatives to start later in the year HMRC announced in a recent press release that other campaigns to be launched in 2011/12 will focus on: the following sectors;

Trades. This will build on HMRC’s plumbers’ campaign and give an opportunity to another group of tradespeople to come forward and declare unpaid tax.

HMRC To check mortgage applications

The Single Compliance Process, what is it and how will it impact?

Posted 30/08/2011

One of HMRC’s top priorities as part of the Spending Review is to relieve the compliance burden on businesses and their agents and increase the efficiency of their activities. HMRC say they want to bring together what they know and believe works well from SA Enquiries (‘Full’ and ‘Aspect’), Employer Compliance and Assurance work.

VAT Amnesty .... The latest incentive to become compliant by HMRC

Posted 24/08/2011

HMRC have now officially launched its campaign to target the 40,000 businesses it believes are earning above the £73,000 threshold, but are not registered for VAT.

The campaign is expected to run along the same lines as previous initiatives where HMRC encouraged non-payers to disclose what they owe before taking action against those who failed to come forward. No confirmation of this has yet been forthcoming from HMRC

Increase in Fee Protection Insurance claims continues

Posted 19/08/2011

It is now becoming an all too familiar beat, but we intend to keep banging the drum - claims levels continue to increase and it is therefore as important as ever that you take advantage of the protection afforded by our Fee Protection Insurance.

Throughout most of 2009 (which seems a long time ago now) we saw a lull in HMRC activity, perhaps as they got to grips with the new powers granted by Sch36. However for the latter part of 2009 and throughout 2010 there was a steady increase in claims levels. This has continued into 2011, with claim notifications in the first 6 months of 2011, 52% higher than the first 6 months of 2010.

HMRC to target tutors, tradesmen and e-traders

HMRC ASSAULT ON SMALL AND MEDIUM SIZED BUSINESSESS:

Posted 01/08/2011

THE TAXMAN has announced that in a campaign commencing in September 2011 200,000 small businesses will be selected for one of HMRC’s new ‘Business Records Checks’ aimed at raising an extra £600 Million over four years.

HMRC launches VAT Registration amnesty for £73k+ earners

Posted 14/07/2011

Following HMRC’s recent tax amnesty targeting plumbers, those strike-happy tax collectors have launched another campaign encouraging businesses with revenues above the VAT threshold (currently £73,000) who are not currently VAT Registered to come forward to admit their unpaid taxes – and incur a reduced penalty of only 10% of the the VAT owed.

PAYE attention RTI is coming

Conspirators jailed after six million cigarettes seized

Posted 00/00/0000

Four men, who tried to evade over £1.3 million in duty and taxes due on sales of almost six million illegal cigarettes, have been sentenced today after an investigation by HM Revenue and Customs (HMRC).